Designers&rsquo confidence in economy springs back

NEW YORK, August 7, 2009. AIGA’s Design Leaders Confidence Index for the second quarter of 2009—based on responses from 324 design leaders working in various types of practices—has gained dramatically from the previous quarter, increasing from 67 to 88, and indicates confidence that demand for design services is improving. This is the second quarter of increased confidence in the design economy overall.

The profession’s leaders have not been this confident about conditions in the design economy since October 2007, when the index reached 86. The benchmark for judging this index is 100, where the confidence level was when AIGA began its quarterly tracking in April 2005.

As of this reading, 31 percent feel both the design economy and the economy as a whole are worse now than six months ago (down from 56 percent in April, in the case of the design economy). However, only 9 percent believe the design economy will weaken over the next six months, and 53 percent feel it will improve moderately or substantially. Design leaders are even more optimistic about the growth of the economy in general over the next six months.

One in three design leaders believe that their likelihood of adding new staff is less than it was on April 1, 2009; only 14 percent feel they are more likely to add staff now than they had anticipated at the start of the quarter. This is a modest reduction in hiring prospects.

Comparison to business leaders’ confidence

AIGA’s survey uses the same methodology as the Conference Board Measure of CEO Confidence, which had increased in the first quarter of 2009 and surged in the second quarter. The corporate CEO confidence measure increased from 30 to 55—a reading above 50 means more positive than negative responses.

Looking ahead six months, CEOs are much more optimistic than design leaders. Nearly 55 percent of business leaders expect economic conditions to improve in the next six months, up from approximately 17 percent. However, 56 percent of the CEOs who expect the economy to improve also anticipate increasing profits by lowering costs, which could hurt designers if the hiring of design services is among the cutbacks.

The next Design Leaders Confidence Survey will be conducted in mid-October 2009.

For more information, visit www.aiga.org/confidence-index.

About AIGA

AIGA, the professional association for design, is the premier place for design—to discover it, discuss it, understand it, appreciate it, be inspired by it.

AIGA’s mission is to advance designing as a professional craft, strategic tool and vital cultural force. AIGA stimulates thinking about design through journals, conferences, competitions and exhibitions; demonstrates the value of design to business, the public and government officials; and empowers the success of designers at each stage of their careers by providing invaluable educational and social resources.

Founded in 1914, AIGA remains the oldest and largest professional membership organization for design. AIGA now represents more than 22,000 design professionals, educators and students through national activities and local programs developed by 64 chapters and 240 student groups. AIGA is a nonprofit, 501(c)(3) educational institution.

For further information, please contact:
Jennifer Bender
Manager, communications and marketing
AIGA | the professional association for design
Tel 212 807 1990   Fax 212 807 1799